...ase study of Tata Motor Acquisition of Jaguar and Land Rover You are Here: Home > Management Case Studies > Case study of Tata Motor Acquisition of Jaguar and Land Rover According to industry analysts, some of the issues that could trouble Tata Motors were economic slowdown in European and American markets, funding risks, currency risks etc. Acquisition of Jaguar and Land Rover provides the company with a strategic opportunity to acquire iconic brands with a great heritage and global presence, and increase the company’s business diversity across markets and product segments.- Tata Motors, in April 2008. “If they run the brands as a British company and invest properly in new product, it will be successful because they are still attractive brands.”- Charles Hughes, Founder, Brand Rules LLC, in 2008. “Market conditions are now extremely tough, especially in the key US market, and the Tatas will need to invest in a lot of brand building to make and keep JLR profitable.”- Ian Gomes, Global Head, Emerging Markets, KPMG, in 2008. Acquisition of British Icons On June 02, 2008, India-based Tata Motors completed the acquisition of the Jaguar and Land Rover (JLR) units from the US-based auto manufacturer Ford Motor Company (Ford) for US$ 2.3 billion, on a cash free-debt free basis. JLR was a part of Ford’s Premier Automotive Group (PAG) and were considered to be British icons. Jaguar was involved in the manufacture of high-end luxury cars, while Land Rover manufactured high-end...
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...of the document.] | Case Study: Jaguar’s Passage to India Introduction In 2008, Tata Motors paid the Ford Motor Company $2.3 billion for U.K. based automakers Land Rover and Jaguar. Jaguar’s new owners face challenges of their own. Some have criticized the acquisition on the grounds that the brands are not compatible with the low-cost cars, trucks, and commercial vehicles that have long been Tata’s mainstays. Tata Motors is a multinational corporation headquartered in Mumbai, India. Part of the Tata Group, it was formerly known as TELCO (TATA Engineering and Locomotive Company). Tata Motors has consolidated revenue of USD 16 billion after the acquisition of British automotive brands Jaguar and Land Rover in 2008. Tata Motors, the largest automobile company in India is facing some problems. In late January 2009, Tata Motors was reeling under a severe business and financial crisis. The company had acquired Jaguar and Land Rover (JLR) from the US-based Ford Motors for US$ 2.3 billion in June 2008. To finance the acquisition, Tata Motors raised a bridge loan of US$ 3 billion from a consortium of banks. By the end of January 2009, Tata Motors was yet to pay around US$ 2 billion towards the bridge loan. Moreover, JLR needed further investments, that too quickly, to keep the operations running. Besides this, the commercial launch of Tata Motor's small car Nano required much more time than anticipated. Discussion Questions: 1. Do you think Jaguar and Land Rover will prosper...
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...REPORT: TATA MOTORS Chapter 1 INTRODUCTION India has been one of the largest automobile industry in the world. The growth of this industry had been one of the fastest globally but due to various reasons the growth has unacceptably declined in the present day. Passenger car and commercial vehicles manufacturing industry of India stands in the sixth position in terms of volume, 3.9 million units were produced in 2011. India saw a growth from 16 to 18 percent of sales during 2011 to 2012.Earlier Brazil was ahead of India in terms of volume production. India managed to surpass the old and new auto makers such as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain and France. India managed to beat Thailand in 2010 and came forward to third position from fourth position the previous year in being Asia’s largest exporter of passenger cars. By 2015, the Society of Indian Automobile Manufacturers predicted that the annual vehicle sales will increase to 4 million. India’s car manufacturing industry can be largely divided into three hubs i.e. the south, west and north. Chennai in the southern cluster contributes 35% of the share of revenue. Mumbai and Pune in the western cluster is responsible for contributing 33% of the revenue and the National Capital region in the northern hub contributes 32%. Ford, Hyundai, Daimler, BMW, Hindustan Motors, , Nissan, Caparo, Mini, Renault, Mitsubishi, and Datsun have their operating station in Chennai. General Motors, Tata Motors, Force Motors...
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...| | | Tata Motors, Ltd., the automobile division of the global conglomerate the Tata Group, was India’s leading commercial vehicle manufacturer and the third largest passenger vehicle maker in 2012; culminating into unprecedented growth in several areas and, as mentioned in the case study presented by Turnipseed and Gamble of The University of South Alabama, helped to make Tata India’s highest revenue generating automobile company (as cited in Thompson, Peteraf, Gamble, & Strickland, 2013, p. C-246). In the international marketplace, Tata is also very competitive, particularly in China and emerging economies such as Brazil and several countries in Africa. Although the company’s 2012 annual report, along with the analysis conducted by Turnipseed and Gamble, provide an optimistic view of the company’s long-term fiscal health and ability to continue to compete; further research and analysis indicate several challenges and a variety of obstacles for Tata to overcome if it is to become “a global contender in the automobile industry.” The case study that follows offers insight into the macroeconomic environment in which Tata operates, specifically in India, the competitive forces applying pressure on, not just Tata, but the global auto industry as a whole and, finally, a brief analysis of the firm’s financial performance over the past five years. Subsequent to this, we shall uncover the key success factors for Tata and its core competencies and deficiencies; what...
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...Strategic development TATA MOTORS Introduction: Tata Motors Limited (formerly TELCO, short for Tata Engineering and Locomotive Company) is an Indian multinational automotive manufacturing company headquartered in Mumbai, Maharashtra, India and a subsidiary of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, construction equipment and military vehicles. It is the world's seventeenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune in India, as well as in Argentina, South Africa, Thailand and the United Kingdom. It has research and development centres in Pune, Jamshedpur, Lucknow and Dharwad, India, and in South Korea, Spain, and the United Kingdom. Tata Motors' principal subsidiaries include the British premium car maker Jaguar Land Rover (the maker of Jaguar, Land Rover and Range Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat which manufactures automotive components and Fiat and Tata branded vehicles. Founded in 1945 as a manufacturer of locomotives...
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...Tata Motors 1. Describe the economic characteristics of the global motor vehicle industry. The characteristics of the global motor vehicle industry are a boom in certain places and a bust in others all due to economic conditions in different nations. Four years after tow of Detroit Michigan’s big three went into bankruptcy American car makers are going “full throttle” with sales in August hitting an annual rate that if substantiated can take them back over 16 million and that is a rate that was last hit before the economic crisis and 80% higher than 2009 when GM and Chrysler went into bankruptcy. The opposite is happening in Europe being in its sixth year slump now and with a weak economy, high petroleum prices and an aging population being weighing factors on mass market car makers. This has led to cost cutting and over capacity for European car makers. This seems to be a trend worldwide as well as car makers are depending on there luxury brands to make them profitable. Tata has seen a profit due to Jaguar and Land Rover surging there net sales up 71% to 566 million dollars and raising revenues 31% to 568.82 billion rupees. This came dispute as the company said “a weak operating environment in the India business which was more than offset by increasing wholesale volumes and richer product and market mixes at JLR”. This is similar to Renault depending on Nissan and sales of cars produced in low cost factories in Romania to cover domestic losses. Mercedes and BMW are generating...
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...Examination of the Potential Consequences for the Jaguar Brand resulting from its takeover by TATA Motors of India. Pg.-2 Acknowledgements: This research would not have been possible without the support and assistance of Mr. Gareth Williams, the dissertation supervisor. I am also very grateful to all the experts at Audi, BMW and Jaguar Dealerships (Leeds) and to the people who agreed to share their views with me which assisted in the research process. Pg.-3 Table of Contents Pages Acknowledgements 2 Abstract 4 1. Introduction 6 2. Literature Review 10 2. (A) what is a Brand? 2. (B) why is Branding important? 2. (C) Branding of Cars 2. (D) The issue of Declining Brands 2. (E) Country of Origin 3. Research Methodology 21 4. Research Analysis and Findings 35 5. Conclusions ...
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...House of Tata – Acquiring a Global Footprint Group 1 Bhuvan Bajaj Karan Bahl Raki Jain Trivikram Apte Vinayak Pareek Yan Yan Huang House of Tata – Acquiring a Global Footprint Executive Summary What and how did TATA emerge as a Multi Brand? Founded in 1868 by Jamshetji N. Tata as a trading firm Textiles in 1874 India’s first luxury hotel in 1903 First private steel company in 1907 First airline in 1932 First software firm in 1968 Liberalization of the Indian Economy and the changes that it brought to TATA’s way of doing business Ratan Tata becomes chairperson in 1991 • • First objective: Streamline group portfolio Some groups diversified and others organized around seven sectors 2 Major global expansions In 2000, Tata groups started internationalized operations and 65% of collective revenues were expected to come from outside India 1. Tata Consultancy ServicesWhy TCS, the group’s tech and consulting giant underwent its evolution at a much faster rate than the other Tata companies, in a sense became more global. And they perceived more growth in the foreign market and had to expand globally, TCS accounted for $27.8 billion of Tata’s $59.5 billion market capitalization as of August 2007 2. TitanExpanded globally but suffered high losses thus established itself as an NRI brand, especially in the Middle East. 3. Indian Hotels Company – TAJ Hotel Group Began globalization in 1982, Tata purchased 51 Buckingham gate and St. James court hotel which was later branded as...
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...An analysis and evaluation of the business model of Tata Group Introduction In the following case we will briefly analyze and evaluate the business model of Tata Group, an Indian giant that is moving into a global powerhouse. We will firstly use the SWOT analysis tool in order to understand the internal and external environment. Then we will strategically position the group with the help of the Porters Generic Strategy which will be followed by an overview of the VRIO model and conclude with looking into the croups portfolio with the Boston Consulting Group (BCG). According to Johnson et all described in their book Exploring Corporate Strategy, ”A business model describes the structure of product, service and information flows and the roles of the participating parties” For example a it is how the description of raw material is being converted to a final product and transferred to the final consumer. SWOT Analysis SWOT analysis is a tool that helps us develop strategic development by creating strategic options and evaluate future planning. This is achieved by identifying and analyzing the most important issues in a company’s environment as well as the strategic capability of an organization. Strengths: * Innovation is one step that Tata has advantage because, the lot of companies the group has helps each other and makes it easier to develop. * Resources are easier to being accessed due to the fact that Tata has a wide range of companies in their portfolio that...
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...1 A Project Report Submitted on the Technology of “Tata Nano Car” As Part of the Course Managing Technology for Competitiveness PREPARED BY Choidup Dorji (113378) Wangmo Chador (113377) Pishenbay Adilbaevich Umirbekov (113417) Nipu Kumar Nath (112889) Christian Riisager (112846) 2 Executive Summary The study of Tata Nano car technology has demonstrated the fact that how a technological revolution has taken place in Automobile sector by the introduction of Tata Nano car in the market. It is 2 feet shorter than a Mini Cooper, has a comical appearance and weighs less than the four passengers it seats. But for the 350-millionplus middle class of India, Tata Nano, the world's cheapest car at $2,000, is a cause for exhilaration and for the first 100,000 lucky customers drawn via lottery, it's a dream come true. A century after Henry Ford put America on wheels with the Model T; the affordable Tata Nano is doing the same to the less privileged of the world. What is now dismissed by many as a "toy car" could soon reveal itself to be the mouse that roared, one of the most transformational consumer products of the century. Roughly 100,000 Indians lose their lives on the road every year, seven times the rate of the developed world. In a country where it is not uncommon to see entire families overflowing a rickshaw or women in saris sitting side-saddle on a bike with small children on their laps, moving one's family from an unsafe bike into a plastic capsule is a...
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...2015 Marketing Management-1 Project: Tata Motors ------------------------------------------------- Submitted by- ------------------------------------------------- Ranjith Narayanan 0315/52 ------------------------------------------------- Ritesh Kumar 0325/52 ------------------------------------------------- Saahil Nagrani 0335/52 ------------------------------------------------- Sandeep Kumar Pal 0345/52 ------------------------------------------------- Sarthak A Nayak 0355/52 ------------------------------------------------- Shah Yash Virajbhai 0365/52 ------------------------------------------------- Shrey Chaturvedi 0375/52 INDEX Contents | Page no. | Pestel analysis | 2 | porter’s five forces analysis | 9 | STP Analysis | 12 | product portfolio | 16 | Distribution Channels | 22 | curious case of tata nano | 25 | conclusion | 28 | references | 30 | PESTEL ANALYSIS Political ENVIRONMENT:- TATA motors with more than 60,000 employees is plying more than 8million vehicles on Indian roads. It is operating in multiple countries across Europe, Asia, Africa, Middle East and Australia. Because of this it needs to pay a close attention to political climate across the world. Government policies like labor laws, corporate laws, land acquisition, import duties and exports laws have a deep impact on the working of the manufacturing giant, TATA motors. TATA motors has been involved in Singur plant controversy. TATA wanted to build...
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...Business Policy & Competitive Strategy Vivek Khanna TATA Motors This project is a part of the internal assessment for the subject Business Policy & Competitive Strategy. I have developed a Porter’s Five Forces analysis for the organization. I identified strategic strengths and weaknesses and identified core competencies of the organization . The company that I have taken into account to analysis the Porter’s Five Forces is the Tata Motors. The Specific product that I will be taking into analysis is the NANO CAR. This segment has a great growth potential in developing countries , especially in a country like India. 1. Potential Entrants – Threat of new entrants 2. Buyers – Bargaining power of buyers 3. Substitutes – a. Threat of substitute products or services b. Rivalry among existing firms 4. Suppliers - Bargaining Power of Suppliers 5. Other Stakeholders – Relative Power of Union, Governments etc. A brief Information about the product : The Tata Nano is a rear-engine, four-passenger city car built by Tata Motors, aimed primarily at the Indian market. The car is very fuel efficient, achieving around 78mpg on the highway and around 92 in the city. It was first presented at the 9th annual Auto Expo on 10 January 2008, at Pragati Maidan in New Delhi, India. Nano had a commercial launch on March 23, 2009 and, a booking period from April 9 to April 25, generating more than 200,000 bookings for the car. The sales of the car will begin in...
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...Crafting a Compelling Employee Value Preposition for Tata Motors This case has been prepared by Tata Motors Corporate HR for TML Case study competition- ‘Mind Rover’. This case study is recommended for being used for the ‘Mind Rover’ case study competition only and does not illustrate either correct or incorrect handling of an administrative situation. No part of this case can be used, reproduced or distributed in any manner without the approval of Tata Motors. Crafting a Compelling Employee Value Preposition for Tata Motors 2 As a part of his induction Prabir had visited Tata Motors’ manufacturing & assembly plants in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad and Pune. He met employees at not just these manufacturing units but also the sales and marketing offices across the country and the R&D centres. “I think we are doing just the right things that any company should. However, I find one best practice in one location is very different from how it is practiced in another location. As someone who is still new to the culture, I am still to discover ‘One Tata Motors’ way of doing things when it comes to employee initiatives”. He had commented. Having said that, the average attrition rate of 9%, was way below the industry average of 13.3%. There were employees who had been in the system for 24 to even 35 years and they carried a lot of tacit knowledge. This needed to be transferred and documented for the next gen. What bothered Prabir was there were still some quarters...
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...CONTENTS CORPORATE OVERVIEW (1-31) Board of Directors Senior Management Corporate Information Chairman’s Statement Designed to Deliver Product Range Global Presence Milestones Winners From Tata Motors Customer Satisfaction Green Mobility Human Resources Corporate Social Responsibility FINANCIAL HIGHLIGHTS (32-45) Pace in Performance Summarised Balance Sheet and Statement of Profit and Loss (Standalone & Consolidated) Fund Flow Statement Subsidiary Companies: Financial Highlights Financial Statistics STATUTORY REPORTS (46-122) Notice Directors’ Report Management Discussion and Analysis Report on Corporate Governance Awards and Achievements FINANCIALS Standalone Financials (123-168) Auditors’ Report Balance Sheet Profit and Loss Statement Cash Flow Statement Notes to Accounts Consolidated Financials (169-206) Auditors’ Report Balance Sheet Profit and Loss Statement Cash Flow Statement Notes to Accounts Attendance Slip and Proxy Form ANNUAL GENERAL MEETING Date: Friday, August 10, 2012 Time: 3.00 p.m. Venue: Birla Matushri Sabhagar, 19, Sir Vithaldas Thackersey Marg, Mumbai 400 020. 2 6 7 8 12 14 16 18 20 22 24 26 28 Tata Motors began operations in 1945. Since that time, we have remained committed to our values and our stakeholders. We have maintained a consistent focus on strengthening our organisation, and expanding our presence. Today, through our subsidiaries and associate companies, we already operate in the UK, South Korea, Thailand, Spain and South Africa. Our forays...
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...69TH ANNUAL REPORT 2013-14 04 WHAT’S INSIDE CORPORATE OVERVIEW 02 Corporate Information 03 Mission, Vision and Values 04 Chairman’s Message 08 Board of Directors 12 Tata Motors at a Glance 14 Major Launches during the Year 16 Presence across Markets 18 The NEXT Level in Design 20 The NEXT Level in Driving Experiences 22 The NEXT Level in Fuel Economy 24 The NEXT Level in Connectivity 26 Corporate Social Responsibility at Tata Motors 30 Awards and Accolades 32 Financial Performance 36 Summarised Balance Sheet and Statement of Profit and Loss (Consolidated) STATUTORY REPORTS 44 Notice 53 Directors’ Report 69 Management Discussion & Analysis 104 Corporate Governance 125 Secretarial Audit Report Chairman’s Message To ensure long-term competitiveness of Tata Motors, the company also took several steps under the Horizonext strategy. FINANCIAL STATEMENTS Standalone Financial Statements 126 Independent Auditors’ Report 130 Balance Sheet 131 Statement of Profit and Loss 132 Cash Flow Statement 134 Notes to Accounts Consolidated Financial Statements 170 Independent Auditors’ Report 172 Balance Sheet 173 Statement of Profit and Loss 174 Cash Flow Statement 176 Notes to Accounts Subsidiary Companies 207 Financial Highlights 210 Listed Securities issued by Subsidiary Companies during FY 2013-14 14 Major Launches during the Year Our products represent the Horizonext philosophy with best-in-class offerings. 38 Summarised Balance Sheet and Statement of Profit and...
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